The government’s ambitious Digital India programme is likely to bring in major gains for the banking industry...

The government’s ambitious Digital India programme is likely to bring in major gains for the banking industry in particular, as it will reduce the use of paper in the form of cash, cheques, application forms, statements and credit memoranda. A report by Boston Consulting Group shows digitisation can enhance the banking system’s returns on asset by 0.3-0.4%, which can translate into potential to reduce interest rates for borrowers by 1-1.5%. Moreover, if customers are engaged with intuitive and useful digital payment interfaces, chances are they will keep up to 20% higher balance in their accounts.